Theoretically, decentralization in local government is expected to have positive impacts on the efficiency and equity of public service delivery. However, we can see various outcomes in practice. According to the paper, these outcomes of decentralization depend upon the existing institutional arrangements and coherence of decentralization policies to create incentive environment for bottom-up accountability. The author concludes, “Nevertheless, the empirical evidence presented here is broadly supportive of a positive influence of decentralization policies in reforming public sector in developing countries”.